Korea Investment & Securities and Mirae Asset Securities Become First IMA Operators After Passing Securities Commission Review

Korea Investment & Securities and Mirae Asset Securities will jointly become the first operators of the Integrated Investment Management Account (IMA).

Planning_Yeouido Securities District, Park One, LG Twin Towers. Photo by Hyunmin Kim kimhyun81@

According to financial authorities on November 12, the Securities and Futures Commission under the Financial Services Commission reviewed and approved the designation of Korea Investment & Securities and Mirae Asset Securities as comprehensive financial investment business entities (so-called “comprehensive investment companies”) with over 8 trillion won in equity capital at its regular meeting held on the same day.

This comes about four months after the applications were submitted in July. Once the resolution is passed at the regular meeting of the Financial Services Commission later this month, they will be able to operate the IMA business.

The IMA, which is permitted only for comprehensive investment companies with equity capital of at least 8 trillion won, is a system in which securities firms pursue profits by investing customer deposits primarily (at least 70%) in corporate finance-related assets, while assuming the obligation to guarantee principal repayment.

Investors can expect excess returns without risk of loss. Securities firms can raise funds up to 300% of their equity capital by combining issuance of promissory notes and IMAs. By 2028, comprehensive investment companies are required to allocate at least 25% of the funds raised to venture capital.

Additionally, on the same day, the Securities and Futures Commission also approved the designation of Kiwoom Securities as a comprehensive investment company with over 4 trillion won in equity capital and granted a license for short-term financial business (issuance of promissory notes). If final approval is obtained at the regular meeting of the Financial Services Commission within this month, Kiwoom Securities will become the fifth operator of promissory note issuance.

Currently, four companies are engaged in the promissory note issuance business: Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities, and KB Securities.